NYC Cites Wall Street for $352 Million Tax Shortfall

New York will receive $352 million less in tax revenue than Mayor Michael Bloomberg anticipated in his $68.7 billion preliminary budget for fiscal 2013, mostly because of lower revenue from Wall Street, his office said.

The administration also said costs for social services will increase by $143 million, creating a $495 million gap for the fiscal year beginning July 1. Bloomberg intends to present a revised version of his February spending plan Thursday. It is subject to City Council review and approval.

The shortfall will be mostly offset by $466 million from a legal settlement with Science Applications International Corp. over alleged fraud in a contract to install the CityTime payroll system, the mayor’s office said in a statement

The less-than-expected revenue and increased cost projections mean that the settlement in March won’t provide a revenue windfall to restore school funding, day-care programs, library services and other cuts the mayor included in his February plan.

“New York City has the strongest social-safety net in country, and those costs continue to rise as many families need help, and we’re going to make sure that New York remains first in the nation with a helping hand,” said Stu Loeser, the mayor’s spokesman, in the e-mail.

The mayor’s office said that the reduced forecast of Wall Street revenue was offset in part by growth in tourism, film and television production, education and technology.

“The mayor has spent the last decade diversifying the city’s economy because the financial markets will always have ups and downs,” Loeser said.

The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.